The 10-second takeaway
For the quarter ended Sep. 25 (Q3), Texas Roadhouse met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins shrank, operating margins grew, net margins were steady.
Texas Roadhouse booked revenue of $308.7 million. The 18 analysts polled by S&P Capital IQ predicted a top line of $308.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $269.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.25 for Q3 were 14% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.9%, 60 basis points worse than the prior-year quarter. Operating margin was 9.0%, 40 basis points better than the prior-year quarter. Net margin was 5.9%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $310.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $1.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 285 members out of 324 rating the stock outperform, and 39 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Texas Roadhouse a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Roadhouse is hold, with an average price target of $19.86.
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